Elements Of Financial Statements! Trivia Quiz

31 Questions | By Mrmbball | Last updated: Sep 2, 2020 | Total Attempts: 201

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Elements of financial statements trivia quiz. There are different types of financial statements created by an accountant to show the standing of a company. Every transaction that a company undertakes should be well recorded in the correct books of entry and according to the accounting standards on them. This quiz offers you the chance to refresh your understanding on recording different transactions. Give it a shot and see how well you do!

Questions and Answers

1.

A company issued $4 million in 20-year bonds. Where will this transaction appear on the cash flow statement?
- A.
  
  The operating section
- B.
  
  The financing section
- C.
  
  The investing section
- D.
  
  Both a and b
- E.
  
  None of the above
2.

A company signed a $5 million, 5% 10-year note. Where will this transaction appear on the cash flow statement?
- A.
  
  The operating section
- B.
  
  The financing section
- C.
  
  The investing section
- D.
  
  Both a and c
- E.
  
  None of the above
3.

Huston Corp paid $3,000,000 for a building in June 2004. In its December 31, year-end financial statements this cash flow will appear
- A.
  
  In the operating section of the cash flow statement
- B.
  
  In the investing section of the cash flow statement
- C.
  
  In the financing section of the cash flow statement
- D.
  
  In the income statement
- E.
  
  None of the above
4.

Hollaback Corporation paid $674,000 for a piece of production equipment. This transaction will appear in the Statement of Cash Flows as
- A.
  
  A financing cash outflow
- B.
  
  A financing cash inflow
- C.
  
  An investing cash inflow
- D.
  
  An investing cash outflow
- E.
  
  None of the above
5.

Which of the following would appear as a current asset on the balance sheet?
- A.
  
  Goodwill
- B.
  
  Automobiles used by the sales staff
- C.
  
  Accounts receivable
- D.
  
  Increase in the market value of land held
- E.
  
  None of the above
6.

A company issued preferred stock last year. In this year's financial statements, which of the following balances would include the amount for which the stock was issued?
- A.
  
  Contributed capital
- B.
  
  Retained earnings
- C.
  
  Non-current assets
- D.
  
  Long-term debt
- E.
  
  None of the above
7.

Assets appear on which of the following financial statements?
- A.
  
  Balance sheet
- B.
  
  Income statement
- C.
  
  Cash flow statement
- D.
  
  Statement of retained earnings
- E.
  
  None of the above
8.

At the end of the year, a company has the following balances: Current Assets = $55,000; Non-current Assets = $145,000; Current Liabilities = $40,000. Assume no stock transactions. What is the amount of total liabilities and equities?
- A.
  
  $100,000
- B.
  
  $160,000
- C.
  
  $200,000
- D.
  
  Cannot be determined with the info provided
- E.
  
  None of the above
9.

At the end of the year, a company has the following balances: Current Assets = $55,000; Non-current Assets = $145,000; Current Liabilities = $40,000. Assume no stock transactions. If non-current liabilities =$35,000, what is the end of the year shareholder's equity balance?
- A.
  
  $200,000
- B.
  
  $165,000
- C.
  
  $125,000
- D.
  
  Cannot be determined with the info provided
- E.
  
  None of the above
10.

At the end of the year, a company has the following balances: Current Assets = $55,000; Non-current Assets = $145,000; Current Liabilities = $40,000. Assume no stock transactions. If the company earned $15,000 net income for the year and paid $5,000 in dividends, how much was beginning shareholders' equity?
- A.
  
  $135,000
- B.
  
  $115,000
- C.
  
  $105,000
- D.
  
  Cannot be calculated with the info provided
- E.
  
  None of the above
11.

At the end of the year a company has the following balances: Current Assets = $65,000; Non-current Assets = $145,000; Current Liabilities = $50,000. Assume no stock transactions. If non-current liabilities = $45,000, what is the end of the year shareholder's equity balance?
- A.
  
  $165,000
- B.
  
  $160,000
- C.
  
  $115,000
- D.
  
  Cannot be calculated with the info provided
- E.
  
  None of the above
12.

At the end of the year a company has the following balances: Current Assets = $65,000; Non-current Assets = $145,000; Current Liabilities = $50,000. Assume no stock transactions. If the company earned $25,000 net income for the year and paid $5,000 in dividends, how much was beginning shareholder's equity?
- A.
  
  $95,000
- B.
  
  $115,000
- C.
  
  $130,000
- D.
  
  Cannot be calculated with the info provided
- E.
  
  None of the above
13.

In its December 31, 2004 year-end financial statements Jet Corporation showed the following balances: Current assets, $400,000; Non-current assets, $500,000; Current liabilities, $300,000; Non-current liabilities $150,000; Contributed Capital $200,000. Assume no stock transactions during the year. What is the amount of total liabilities and equities?
- A.
  
  $250,000
- B.
  
  $400,000
- C.
  
  $450,000
- D.
  
  $900,000
- E.
  
  None of the above
14.

In its December 31, 2004 year-end financial statements Jet Corporation showed the following balances: Current assets, $400,000; Non-current assets, $500,000; Current liabilities, $300,000; Non-current liabilities $150,000; Contributed Capital $200,000. Assume no stock transactions during the year. If the company reported earnings of $50,000 for 2004 and paid no dividends, what was the year-end balance in retained earnings?
- A.
  
  $50,000
- B.
  
  $250,000
- C.
  
  $300,000
- D.
  
  $900,000
- E.
  
  None of the above
15.

In its December 31, 2004 year-end financial statements Jet Corporation showed the following balances: Current assets, $400,000; Non-current assets, $500,000; Current liabilities, $300,000; Non-current liabilities $150,000; Contributed Capital $200,000. Assume no stock transactions during the year. If the company reported earnings of $50,000 and paid $50,000 in dividends, what was the 2003 year-end balance in retained earnings?
- A.
  
  $200,000
- B.
  
  $250,000
- C.
  
  $300,000
- D.
  
  $350,000
- E.
  
  None of the above
16.

At its December 31 year-end, Dookie Inc. had the following balances: $400,000 Current Assets; $250,000 Current Liabilities; $100,000 Long-term Debt; $1,000,000 Total Liabilities and Equities. Dookie, Inc. had no stock transactions during the year. How much did Dookie Inc. have in Non-Current Assets?
- A.
  
  $350,000
- B.
  
  $400,000
- C.
  
  $600,000
- D.
  
  $1,000,000
- E.
  
  None of the above
17.

At its December 31 year-end, Dookie Inc. had the following balances: $400,000 Current Assets; $250,000 Current Liabilities; $100,000 Long-term Debt; $1,000,000 Total Liabilities and Equities. Dookie, Inc. had no stock transactions during the year. How much is ending Retained Earnings, if Dookie Inc. has a beginning Retained Earnings balance of $200,000, an annual income of $50,000 and paid no dividends?
- A.
  
  $150,000
- B.
  
  $200,000
- C.
  
  $250,000
- D.
  
  Cannot be determined with the info provided
- E.
  
  None of the above
18.

How much is ending Retained Earnings, if instead Dookie, Inc. has a beginning Retained Earnings balance of $200,000, paid $50,000 dividends during the year, and had an annual income of $50,000?
- A.
  
  $150,000
- B.
  
  $200,000
- C.
  
  $250,000
- D.
  
  Cannot be determined
- E.
  
  None of the above
19.

A company has assets totaling $400,000 and liabilities totaling $250,000. Which of the following statements may be true?
- A.
  
  Contributed capital equals $100,000
- B.
  
  Retained earnings equal $50,000
- C.
  
  Total liabilities and equities equal $400,000
- D.
  
  All of the above
- E.
  
  None of the above
20.

A ___________ is the simplest and cheapest way to start operation.
- A.
  
  Sole proprietorship
- B.
  
  Partnership
- C.
  
  Corporation
- D.
  
  S-corp
- E.
  
  None of the above
21.

________________ are companies that sell consumer goods that are produced by other companies.
- A.
  
  Business organizations
- B.
  
  Service companies
- C.
  
  Manufacturing companies
- D.
  
  Retail companies
- E.
  
  None of the above
22.

A __________ is an artificial being, invisible, intangible, and existing only in contemplation of the law.
- A.
  
  Sole proprietorship
- B.
  
  Partnership
- C.
  
  Corporation
- D.
  
  S-corp
- E.
  
  None of the above
23.

Central Corporation has developed brand name recognition for its products. Management expects this brand name recognition to provide benefits to the firm in its future business activities. The corporation made various expenditures, primarily for advertising and marketing to build recognition. Should the corporation recognize an asset in its financial statements? If so, what is the value of the asset?
- A.
  
  No, the future benefits cannot be reliably measured
- B.
  
  No, the cost of the asset cannot be reliably measured
- C.
  
  Yes, for the amount of expected future benefits which can be reasonable estimated
- D.
  
  Yes, for the amount of expenditures already made
- E.
  
  None of the above
24.

A firm acquires shares of common stock in Garco, Inc. for $640,000. The firm holds these shares with the expectation of developing long-term relations with Garco. Does this transaction give rise to a non-cash asset? If so, what is the account title and value?
- A.
  
  The firm will not recognize an asset
- B.
  
  Cash $640,000
- C.
  
  Marketable securities, $640,000
- D.
  
  Investment in securities
- E.
  
  None of the above
25.

A firm receives notice from a supplier that has shipped by freight raw materials billed at $640,000 with payment due in 30 days. The company obtains title to the goods as soon as the supplier ships them. Does this transaction give rise to an asset? If so, what is the account title and value?
- A.
  
  Accounts Receivable, $640,000
- B.
  
  Supplies, $640,000
- C.
  
  Inventory, $640,000
- D.
  
  The firm will not recognize as an asset
- E.
  
  None of the above